Correlation Between Hecla Mining and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Hecla Mining and Anglo Asian at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hecla Mining and Anglo Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hecla Mining Co and Anglo Asian Mining, you can compare the effects of market volatilities on Hecla Mining and Anglo Asian and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hecla Mining with a short position of Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hecla Mining and Anglo Asian.
Diversification Opportunities for Hecla Mining and Anglo Asian
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hecla and Anglo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hecla Mining Co and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining and Hecla Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hecla Mining Co are associated (or correlated) with Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Hecla Mining i.e., Hecla Mining and Anglo Asian go up and down completely randomly.
Pair Corralation between Hecla Mining and Anglo Asian
Assuming the 90 days trading horizon Hecla Mining Co is expected to under-perform the Anglo Asian. In addition to that, Hecla Mining is 1.27 times more volatile than Anglo Asian Mining. It trades about -0.18 of its total potential returns per unit of risk. Anglo Asian Mining is currently generating about -0.02 per unit of volatility. If you would invest 10,500 in Anglo Asian Mining on October 12, 2024 and sell it today you would lose (100.00) from holding Anglo Asian Mining or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hecla Mining Co vs. Anglo Asian Mining
Performance |
| Timeline |
| Hecla Mining |
| Anglo Asian Mining |
Hecla Mining and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hecla Mining and Anglo Asian
The main advantage of trading using opposite Hecla Mining and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hecla Mining position performs unexpectedly, Anglo Asian can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Hecla Mining vs. Games Workshop Group | Hecla Mining vs. Trellus Health plc | Hecla Mining vs. Gaming Realms plc | Hecla Mining vs. Abingdon Health Plc |
| Anglo Asian vs. Zoom Video Communications | Anglo Asian vs. BW Offshore | Anglo Asian vs. Nordic Semiconductor ASA | Anglo Asian vs. Darden Restaurants |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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